Active Savings (Current Year) metric calculation

  • Release version: Zurich
  • Updated March 31, 2025
  • 3 minutes to read
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    Summary of Active Savings (Current Year) metric calculation

    The Active Savings (Current Year) metric tracks the targeted savings from pipeline projects that are currently in progress (Work in Progress state). It reflects projected savings based on the Targeted savings field, representing ongoing initiatives where final realized savings are not yet confirmed. This metric differs from Planned Savings by focusing solely on projects actively underway, providing ServiceNow customers with insight into expected savings from current efforts within a specified date range, typically the current calendar year.

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    How the Metric is Calculated

    • Date Range Input: The metric calculates savings over a user-specified date range, commonly the current year.
    • Monthly Breakdown: The date range is divided into monthly intervals to assess savings contributions over time.
    • Project Qualification: Only projects in the Work in Progress state with a defined savings start and end date, overlapping the monthly window, and having a non-zero Targeted savings value are included.
    • Proration Logic: Savings are prorated monthly based on project duration and overlap with the month. The per-day savings rate is calculated by dividing Targeted savings by the project duration capped at 365 days. Prorated savings for each month are computed by multiplying the per-day rate by the number of overlap days.
    • Aggregation: Monthly prorated savings from qualifying projects are summed to produce a time-series dataset used in the Savings by Type chart on the analytics dashboard.

    Proration Formula

    The formula used is:

    Prorated Savings = (Targeted Savings ÷ min(Project Days, 365)) × Overlap Days

    This formula ensures multi-year projects are capped at 365 days to maintain an annualized savings perspective.

    Example Calculation

    For three ongoing projects in 2024 with varying durations and savings targets, the metric calculation applies the proration formula per project, resulting in prorated savings that sum to the total Active Savings (Current Year):

    • PIPE-301: $240,000 for a 184-day project fully within the year.
    • PIPE-302: $365,000 for a full 365-day project aligned with the year.
    • PIPE-303: $1,000,000 for a multi-year project capped at 365 days.

    Total Active Savings (Current Year): $1,605,000

    Practical Benefits for ServiceNow Customers

    This metric allows customers to monitor the expected savings from projects actively being executed, supporting financial forecasting and performance tracking. By focusing on Work in Progress projects and applying date-based proration, customers gain a precise, time-relevant view of savings impact, enabling informed decision-making and resource allocation.

    Active Savings (Current Year) shows the targeted savings from pipeline projects that are currently in progress. This metric represents in-flight work where final realized savings are not yet known.

    Active Savings (Current Year) reads from the Targeted savings field because work is still underway and the final realized savings are not yet known. The difference from Planned Savings is the pipeline state; Active Savings (Current Year) includes projects only in Work in Progress state.
    Note:
    Both Active Savings and Planned Savings read from the Targeted savings field. This is intentional — both represent projected or goal savings. The distinction is whether work on the project has started.

    Metric definition

    The following attributes define the Active Savings (Current Year) metric:

    Attribute Detail
    Metric name Active Savings (Current Year)
    Pipeline state Work in Progress
    Savings field Targeted savings
    Date range User-specified (typically the current calendar year)
    Proration Yes — overlap-based proration
    Used in Savings by Type chart on the analytics dashboard

    How Active Savings are calculated

    The calculation follows the same steps as Planned Savings, with the state filter set to Work in Progress instead of Planned.

    • Receive the date range. The dashboard passes a date range — typically the current calendar year — along with any active filters.
    • Break the range into monthly intervals. The system splits the full date range into individual month windows.
    • For each month, identify qualifying projects. The system queries the pipeline project table for projects in Work in Progress state where:
      • The project has a savings start date and a savings end date.
      • The savings period overlaps with the month window.
      • The project has a non-zero Targeted savings value.
    • Prorate each project's savings against the month window. The system applies the same proration formula used across all four metrics:
      • Per-day rate = Targeted savings ÷ project duration (capped at 365 days)
      • Prorated savings = per-day rate × overlap days
    • Sum the monthly totals. The prorated savings for all qualifying projects in each month are added together.
    • Aggregate across months. The monthly totals are combined into a time-series dataset for the Savings by Type chart on the analytics dashboard.

    Proration formula

    Prorated Savings = (Targeted Savings ÷ min(Project Days, 365)) × Overlap Days.

    Applied per month window, for Work in Progress projects only.

    Example calculation

    The following scenario demonstrates how Active Savings is calculated for three active pipeline projects during the date range of January 1 to December 31, 2024:

    Pipeline State Targeted Savings Savings Start Savings End Project Days
    PIPE-301 (Ongoing Vendor Negotiation) Work in Progress $240,000 Mar 1, 2024 Aug 31, 2024 184
    PIPE-302 (Fleet Cost Reduction) Work in Progress $365,000 Jan 1, 2024 Dec 31, 2024 365
    PIPE-303 (Strategic Sourcing) Work in Progress $1,000,000 Jun 1, 2023 May 31, 2025 730
    PIPE-301: Mid-year short project
    • Project duration = 184 days
    • Overlap with range = 184 days (project falls entirely within the year)
    • Per-day rate = $240,000 ÷ 184 = $1,304.35/day
    • Prorated savings = $1,304.35 × 184 = $240,000.00
    PIPE-302: Full year alignment
    • Project duration = 365 days
    • Overlap with range = 365 days (perfect alignment)
    • Per-day rate = $365,000 ÷ 365 = $1,000.00/day
    • Prorated savings = $1,000.00 × 365 = $365,000.00
    PIPE-303: Multi-year project (365-day cap applies)
    • Project duration = 730 days (Jun 2023 – May 2025) — exceeds 365 days
    • Overlap with range = 365 days (full year 2024)
    • Per-day rate = $1,000,000 ÷ 365 (capped) = $2,739.73/day
    • Prorated savings = $2,739.73 × 365 = $1,000,000.00

    Final aggregation

    The final aggregation sums the prorated values:

    Pipeline Prorated Active Savings
    PIPE-301 $240,000.00
    PIPE-302 $365,000.00
    PIPE-303 $1,000,000.00
    Total Active Savings (Current Year) $1,605,000.00